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Oman: Khazzan Boosts LNG Exports To Record Levels

Oman’s LNG exports hit a four-year high in 2017. Since then the 1bn cfd Khazzan field has hit full capacity. With domestic demand lagging, 2018 may see Oman fill up its 10.4mn t/y export capacity for the first time ever.

Two years ago, Oman’s LNG sector looked in trouble: output had tumbled from 2007’s record of 9.1mn t/y to just 7.9mn tons in 2015 as concerns over rapidly-rising domestic gas consumption called into question the country’s long-term viability as an LNG exporter (MEES, 11 November 2016).

But since the start-up of the giant BP-operated Khazzan gas field in October 2017 there has been a near-180 degree turnaround in the country’s prospects as an LNG exporter. Talk of importing Iranian gas to keep its 10.4mn t/y of LNG export capacity in business has been consigned to history.

In the wake of Khazzan start-up the country’s gas output edged up to a record 39.1bcm (3.78bn cfd) in 2017. LNG production also edged up, hitting a four-year high of 8.6mn tons according to figures in Oman LNG’s recently-released annual report (Oman’s customers received 8.24mn tons – see chart – implying ‘boil off’ losses of around 4%).

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